UK construction output down 11.6% in August

<p>Construction sector output was down in August, according to the ONS.</p>

UK construction output slipped by 11.6 per cent on the year in August and compared to July, this figure was down 0.9 per cent after a 2.1 per cent month-on-month increase in July.

This is according to the Office for National Statistics (ONS), which revealed construction production was down 11.9 per cent between June and August compared to the same timeframe in 2011, with the main drag coming from a 15.6 per cent slide in new business.

These figures will be part of third-quarter gross domestic product data, which is due to be released on October 25th.

Furthermore, the ONS figures echo Markit's purchasing managers' index construction survey, which also show the sector contracted in August.

The Markit report suggests new orders slumped at their fastest pace since the height of the financial crisis in 2008.

At 12:00 BST today (October 12th), the pound was lower in forex trading versus the euro by 0.1 per cent to £1 for every €1.238, while it gained 0.1 per cent against the dollar to £1 for every $1.606.

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